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Heatform/heatilator "ceiling" corroded

Upon getting my fireplace/chimney cleaned two weeks ago, I was told that I had a serious fire hazard inside my firebox. The "ceiling" of the heatilator shows extensive rust/corrosion to the point of major holes. (see pic attached).

I'm looking for my least expensive option for repair (but also safe, of course). Is it possible to just replace the ceiling portion inside the firebox? Or just the firebox itself without having to get an insert? If so, where/who/what? The fireplace and blower have functioned great (without knowing about the holes).

Side note: I did have this fireplace and chimney inspected upon purchasing the house two years ago. It passed with flying colors - "barely used" he said. Apparently, none of this was noticed by the chimney/fireplace expert. it seems close to impossible for this damage to occur in such a short period of time. He did seem aloof that day and also told me my fireplace didn't have a blower.

Looks like a prefab metal fireplace, not a heatform. A heatform unit would be very thick steel with a rectangular damper and then go into a clay flue. Looks like you have a thin steel unit, with a round damper and prob a round air cooled flue.

Do you want to be able to heat your house with wood, or just burn for enjoyment? Now would also be a good time to get a gas insert if you have ever considered that.

It looks like a factory built fireplace to me and is rusted out from what I can make out. If so, it should be a total replacement. These units don't rust out that badly that fast. If it had the listed rain cap termination and was properly installed it should not have rusted out this fast.

This unit is not a candidate for an insert. Inserts are designed and approved for fireplaces that are intact and suitable for use burning wood, which this obviously is not. Inserts are not a repair for otherwise unsuitable fireplaces.

The inspector who inspected it two years ago may have some liability in this.

No, there is no recognized repair for such damage--replace it. Even if you don't plan on burning fires, whatever caused this rust will continue and has already probably caused other collateral damage to your home where you may not be able to see it.

I recommend a Level III inspection and full replacement based upon the one hazy photo provided. Anymore pics?